Is it possible to send tax form T2125 to CRA electronically?

[golden-stone-bazaar]

CRA has the way to send income tax information electronically, but not the form T2125 that must be attached to it. At least I couldn't find it. Is there way to fill this form and send it electronically?

What eBay sellers list as Industry Code on this form: electronic auctions or online sales?

How do you report eBay fees - as expenses under Management Fees, like PayPal?

Thank you.

[pierrelebel]

Industry Code: Retail or Online Sales

Like many other sellers, my books are prepared using accepted accounting rules and the presentation may vary slightly from the forms suggested by the government.

Here is a sample of a P&L prepared a few years ago:

http://pierrelebel.com/lists/P&L-sample.htm

You can use it and modify it as you wish. This is an example of the Profit Statement attached every year to my income tax return.

Total sales is entered on line 162 (Gross Business Income)

While the Net Profit is entered on line 135 (added to other income)

[golden-stone-bazaar]

Thank you, but it's likely that you are not a sole proprietor: they MUST  fill this form (see http://www.cra-arc.gc.ca/tx/bsnss/tpcs/slprtnr/ and  http://www.cra-arc.gc.ca/E/pub/tg/t4002/t4002-e.html#P464_25502 ). For partnerships, they "we will continue to accept other types of financial statements."(last link, slightly below)

[pierrelebel]

There is no "MUST".

You can select the method of presenting the information as long as it is done consistently from year to year and is based on approved methods of accounting.

[pierrelebel]

At tax time, CRA sends businesses a booklet "Business and Professional Income" (includes form T2125).

This guide, on page 12, states:

"In the middle of this guide, you will find two copies of Form T2125, Statement of Business or Professional Activities. This form can help you calculate your income and expenses for income tax purposes. We encourage you to use it. However, we will continue to accept other types of financial statements."

If you prefer to use T2125, use it by all means. I am simply stated that it is not mandatory.

[golden-stone-bazaar]

Pierre, with all respect, we are going nowhere in this discussion. There is "must": "

Chapter 2 – Income from a business or profession Sole proprietorships

If you are a sole proprietor, you must complete all the applicable areas and lines on Form T215, Stetement of Business or Professional Activities." (quoted from ).

If anybody else from sole proprietors will be willing to share what they do, please refer to my original question.

Thank you.

[rose-dee]

Using the form itself is not mandatory, as Pierrre mentioned, but if you do choose to use the T2125 provided by CRA, then you must complete all applicable lines on the form.  This is what your "must" refers to.  

I am a sole proprietor and had a C.A. prepare my return 2 years in a row - they used a standard accounting P&L statement.  Last year I did my own return and used the form provided by CRA in their booklet.  The information required by CRA is essentially the same.  I think CRA encourages the use of its form for its own convenience -- it makes review by their staff probably quicker and simpler if the information is submitted on their own familiar form. 

If you want to be absolutely certain, and prefer not to take Pierre's experience as an example, call or write/email CRA and ask if the form is mandatory, or if a P&L statement can be submitted instead.  I expect they'll tell you exactly what it says in the booklet - encouraged but not mandatory - as Pierre indicated above. 

[golden-stone-bazaar]

Thank you, rose-dee! Can it be submitted electronically? If yes, then how?

[pierrelebel]

As suggested by rose-dee last week, you should call CRA and ask.

I have always filed my tax returns, including my P&L Statements, my mail, the old fashioned way.